Global CEOs "Most Optimistic Economic Growth Outlook in a Decade This Year"

[Asia Economy Reporter Ji-hwan Park] Despite the prolonged COVID-19 pandemic, concerns over inflation, and supply chain disruptions, CEOs worldwide are the most optimistic about economic growth this year in the past decade. They identified the United States as the top destination for investment to drive corporate growth.

According to PwC's "2022 Global CEO Survey," released annually during the World Economic Forum (WEF) in Davos on the 18th, more than three-quarters (77%) of surveyed CEOs expect the global economy to grow this year. This marks a 1 percentage point increase from last year's 76%, reaching the highest level in 10 years. Compared to 2020, when over half (53%) of CEOs predicted an economic downturn, it appears that despite the spread of COVID-19, CEOs have overcome these challenges and regained an optimistic outlook.

Market conditions characterized by the prolonged pandemic, rising inflation, supply chain breakdowns, and the Great Resignation in some countries continue to pose ongoing challenges for global executives. Nevertheless, in the PwC survey of over 4,400 CEOs worldwide, respondents expressed a positive outlook on economic growth for the year.

More than three-quarters of respondents believe the global economy will grow, the highest figure recorded in surveys conducted over the past decade. Only 15% of CEOs anticipated a decline. The 77% optimism rate for 2022 is slightly higher than the 76% recorded a year earlier. Compared to 2020, when a majority (53%) expected a downturn, this represents a 54 percentage point increase. PwC announced these findings after analyzing the annual global CEO survey conducted from October to November 2021, which included 4,446 CEOs from 89 countries.

While optimism about economic growth is prevalent, perspectives vary significantly by country and region. India, the most optimistic country, saw 94% of CEOs forecasting global growth next year, up slightly from 88% last year. Japanese CEOs also showed a strong upward trend (83%, a 16 percentage point increase from 67%). The UK (82%, a 5 percentage point increase), Italy, and France also experienced significant increases in optimism due to stronger-than-expected economic recovery. Italian CEOs' optimism rose to 89%, an 18 percentage point increase from the previous year, while France saw the largest jump, surging 25 percentage points to 85%.

Conversely, some countries experienced declines in optimism about the global economy amid inflation and supply chain crises. The United States showed the most notable drop, with positive outlooks decreasing by 18 percentage points to the 70% range. Brazil (77%, down 7 percentage points), China (62%, down 9 percentage points), and Germany (76%, down 7 percentage points) also saw slight declines.

US CEOs expressed relatively strong confidence in their companies' revenue growth this year, with 40% stating they are very confident. Indian CEOs similarly showed a positive outlook for their companies' growth, mirroring their optimism about the global economy.

Bob Moritz, Global Chairman of PwC, stated, "Although the pandemic's persistence and the emergence of new variants cast a shadow over the past year, the CEOs' confidence in growth confirms the strength and resilience of the global economy. This demonstrates CEOs' ability to manage and control uncertainty."

This content was produced with the assistance of AI translation services.